Let’s face it – a car insurance policy is not cheap for anyone these days, and adding a teen driver to your policy can just about break the family budget. This may be a good time to review your own policy to find the discounts you should be receiving, and do a little shopping around – there are a lot of companies competing for your business!

Look at your existing coverage – are there ways you can save on your current policy that you may not have investigated before? One example I can give you from personal experience is double paying for towing and rental car coverage. Our family has had a AAA membership for years, yet we were paying for coverage on our insurance policy that we would never use – nor did we ever need rental car coverage.

What about lifestyle changes that could result in lower premiums? Some examples would be getting married, or changing jobs that resulted in a shorter commuting distance.

Think about raising your deductable amount if you have enough emergency cash stashed away. A higher deductable will definitely lower your premium. Driving an older car that you own free and clear of any loans? You may want to consider dropping the collision and comprehensive coverage if damages will more than likely cost more than your car is worth.

Do you have safety features on your car for which you have not been getting any credit? A few examples of this would be anti-lock brakes, front and side airbags, or anti-theft system.

Hopefully, the same company insures all of the cars in you household, since many offer multi-vehicle discounts on their auto policies.

Here are a few easy ways to lessen the blow of a rate increase when you add your new teen driver to your policy:

Good Grades = Better Rates – A student with good grades shows that they are more responsible.

The type of vehicle they drive will make a difference in premiums, so make sure that the car they will be assigned to in your policy is the one that will give you the lowest rate.

Here are a few examples of vehicles with the lowest insurance rates:

Chrysler Town and Country, Toyota Sienna, Honda Odyssey, Nissan Murano,
Ford Escape, Toyota Highlander, Buick Lacrosse, Honda Accord, VW Beetle, Kia Soul

If you must have a separate vehicle for your young-adult, make sure it is an older one that you can pay for in cash. You must have collision coverage if you have a car loan, and with a teen driver that can be very expensive. The ideal situation would be to let him/her have the old (paid for) family car, and let the adult get the new car!

A Driver’s Education Course may not be mandatory in your State in order to get a license, but you should make it mandatory in your family. Besides making teens safer behind the wheel, Driver’s Education can reduce premiums. Some insurance companies have their own program that upon completion can reduce premiums up to 15%.

If your teen is working (and using the car to get there), then make it their obligation to contribute towards their insurance (and gas, of course!). This will also provide them with incentive to be a safer driver.

Take the time to shop insurance companies and compare quotes – and always, always, always ask about discounts!! Never assume that your current company has the best rates or that your current agent has your back – after all, they are making a commission on your business.